If you’re old enough to be filing your own tax returns, then you’ve likely experienced some pain from the 2008 financial crisis. As you may recall, big banks were overextending and funding toxic mortgages and the house of cards came crashing down like dominoes. At the end of it all, taxpayers via politicians ponied up almost a trillion dollars to give the banks that lied and wagered and lost.
If the fact that individuals backed the money that was given to those bank isn’t bad enough, you may find yourself reeling from this update. The banks were found guilty of reprehensible acts that put our entire economy into a downturn and agreed to a settlement of paying back billions of dollars. But did you know that those banks that were too big to fail are being allowed to write off the settlement amounts. In other words, even though none of the individuals responsible for this disaster were brought up on criminal charges, because of that fact these ‘fines’ are not being treated as any sort of punitive damages and therefore subject to deduction from their tax returns.
What that means is since they got caught ripping off America and have to fork money over to the government to give the appearance of accountability, they are reducing their tax burden by ~15 billion dollars…all for paying their fines. Individuals don’t get to write off fines, but big banks do. It would seem not only do our bought and paid for politicians believe these banks are too big to fail, they also extend them the credit of being too big to tax. Regular working folks–don’t worry you’re still expected to pay your taxes in full and make up for what isn’t collected from these banks.
Can’t believe it’s true? Read more about the atrocity your elected officials are allowing in this full article at Newsweek.